Good morning.
We like the use of options as a way to profit from a stock that could potentially make a big move. That usually involves buying an option, whether a call or a put. However, statistics have shown that most options expire worthless. The latest data shows that one-day options have an 83 percent chance of going to zero if they’re a call. And a whopping 91 percent of one-day put options expire worthless.
That’s why we like to give ourselves time for a trade to play out. That could mean weeks or even months. That also allows for more than a one-day move, such as options trades that are based around earnings. But it’s also clear from these statistics that traders can improve their returns by selling call and put options as well.
Now here’s the rest of the news:
Death Spirals And Speculative Frenzies – The New Normal?
There is an element of inevitability in play, but it isn’t about central bank bailouts, it’s about Death Spirals and the collapse of unsustainable systems. The vapid discussions about “soft” or “hard” landings for the economy are akin to asking if the Titanic’s… [Read Here]
Why China Won’t Save The World Economy
China is due for a very long “Japan-style adjustment” says Michael Pettis. But what about the EU and U.S.? When does any country emphasize long-term growth over the short-term? Short-term expediency has always been the case, but global wage arbitrage… [Read Here]
February 16, 2022
Good morning.
Friday marks option expiration, or “opex” week, as most standardized contracts expire on the third Friday of the month. We’ve seen in the past that options trades have now become the tail wagging the stock market’s dog, as retail investors have ditched stocks for options to move their portfolios.
Looking at the current situation, there’s a lot of gamma in the market, largely from investors hedging over last week’s Fed meeting and the Russia-Ukraine fears that continue to wane. As this gamma drops in the options market, we could get a reflexive rally in stocks, continuing the jump higher that started in the market on Tuesday.
Traders should look at this as a short-term opportunity, with the view that traders may want to continue hedging, so options gamma could start rebuilding next week as traders look to March options contracts.
Now here’s the rest of the news:
Producer prices Rises Again In January, What’s Gong On?
The Producer Price Index jumped another percent in January according to the Bureau of Labor Statistics (BLS). Prices for final demand services advanced 0.7 percent in January, the same as in December. [Read Here]
Experts Report A “Perfect Storm” For Bankruptcies And Foreclosures
Economists and professionals in the restructuring sector of business and real estate have been anticipating a distressed economy for the past 18 months. Thus far they have been wrong. The public is just plain confused. [Read Here]
February 16, 2021
Good morning.
During the last financial crisis, central banks started slashing interest rates to zero percent and added in bond-buying programs to support the economy. Those tools were brought back within the space of just a few weeks last year during the pandemic. Last time, there were fears of inflation that didn’t materialize.
Many are saying the same thing today. And it’s true: The consumer price index, or CPI, is still showing inflation at just 2 percent per year. However, when the stock market is up over 15 percent during a pandemic, it’s clear some of the inflation has made its way to asset prices. That’s even clearer when looking at home prices, which have now finally beat their 2005 peak, thanks to a 14.9 percent rise in the past year. If that’s where the money printing is going, it makes sense why many are buying homes and stocks right now, and why that trend is likely to continue.
Now here’s the rest of the news:
Culmination of Fed Interventions Inflates Historic “Everything Bubble”
Market addiction to the Fed’s QE has created a $7.8 trillion problem, and now a key indicator for overvalued asset prices points to an imminent reckoning. Here’s how we know there’s trouble… [Read Here]
February 16, 2020
Some don’t see a problem with 4 out of 500 companies being responsible for 67% of market returns. But what this tell us is that money flowing into company-weighted index funds are starting to have a pull-away effect on these large tech names, and that the best profits for individual traders will be in smaller, more off-the-radar names.
Options trading volumes have hit an all-time high. No sur-prise: Most of the volume is happening in tech names and fast-moving companies like Tesla Motors.
Today is DarrenDaily Recap Sunday. A collection of the weeks videos from Darren Hardy. Enjoy!
…and two more fabulous pictures of Newfoundland … A place I soon will live forever!
“I’d never even heard of Gander until I auditioned,” said Q. Smith,
who plays the stranded mother of a missing New York City firefighter.
“I want to see a moose!”
February 16, 2019
I’ve been head deep in a book called the ‘Compound Effect’ by founder of SUCCESS magazine, Darren Hardy. It has some amazing insights about proven ways to break bad habits.
It’s mid February now! Most of us are trying to make a positive change to our lives and since we’re more than a month into the New Year, this is when our bad habits rear their ugly heads. Break your bad habits. … you think?
That sugar laden high-calorie ice cappuccino or frappuccino every morning or the bowl of candy or chips in the break room…
The bottle of wine with dinner… the sweet treat after dinner… that late night crunchy snack that curbs your cravings… ‘n’ the list goes on & on.
If you’ve spent 20, 30, or even 40 years repeating unhealthy behaviors you’re trying to change then you have to be patient. It’s going to take time, but don’t forget these 3 words… Don’t give up! I’ve put together this cool video for yah!
“For it is the thoughts that you give precedence to that shape you character, create your circumstances, and determine your ultimate destiny.”
Here are 5 techniques that will get you there faster.
[Tomorrow]
To Our Good Habits… 🙂
